Customer experience management and business performance

Abstract

Purpose – The purpose of this paper is to examine how essential dimensions of customer experience management (CEM) drive business performance in Danish companies. Design/methodology/approach – An empirical study is conducted to investigate the relationships between seven CEM dimensions, differentiation, market performance and financial performance. The conceptual model is operationalized by a structural equation model, and the model is estimated and tested by using the partial least squares method. A survey among 484 companies in Denmark forms the empirical basis for the study. Findings – The findings provide evidence that the seven CEM dimensions influence differentiation, market performance and financial performance. High-performing companies differ significantly from low-performing companies with regard to how they master the CEM, meaning that those companies which incorporate superior customer experience into their products and service enjoy measurable financial success. Research limitations/implications – This study is limited to the seven identified CEM dimensions in Danish companies. Practical implications – This study has clear implications in terms of identifying and measuring the importance of essential CEM dimensions which influence business performance. The results can help companies to understand CEM and develop CEM strategies. Originality/value – The paper provides a deeper insight into CEM and how CEM works.